MCOA’s Housing Issues Training Forum

1. MCOA’s Housing Issues Training Forum MCOA's 2017 Housing Issues Training Forum Produced by the Massachusetts Councils on Aging in partnership with Greater Boston Legal Services Funded by the Massachusetts Executive Office of Elder Affairs and Your Membership Contribution

2. What is the Problem? Economic Insecurity in MA Elder Households Older Adults Staying in a Home Too Long Older adults living in a single family dwelling or an apartment that has become too expensive for 1 person to afford. Older adults living alone suffering from social isolation. Living Longer + Low Pensions + High Housing Costs + Depleted Savings + Lack of Financial Literacy + (Financial Abuse for a few) = Economic Insecurity MCOA's 2016 Housing Issues Training Forums MCOA's 2017 Housing Issues Training Forum

3. Forum Goals To set the table for thinking about how to inject more housing “issues and choices” conversations, into your client education & counseling activities. MCOA's 2017 Housing Issues Training Forum

4. Agenda Today 1 PMWelcome 1:10 Setting the Table – Housing is Costly! Options for Cutting Costs 2:15 Tenants & Landlords – Safeguards for Tenants 2:45 Home Sharing – How to Go About Finding a Tenant to Share Your Housing 3:00 Short Break 3:10 Group discussion: What would you need to empower older adults to think more critically about their housing options and take action? 4:00 Adjourn MCOA's 2017 Housing Issues Training Forum

5. Hosts, Funders, and Learning Methods Hosts: • MCOA – Mary Kay Browne • GBLS – Betsey Crimmins Funder MA Executive Office of Elder Affairs Materials: Slide Presentation Handouts Pathway Today: Consider a way to counsel about short term and long term housing goals and options. Review key resources that help pay housing costs. Learn key rules for tenants and landlords. Discuss how you could Integrate housing education and counseling into your community centers MCOA's 2017 Housing Issues Training Forum

6. Financial Education… Is a process by which consumers improve their understanding of financial concepts, products, and risks. They develop the skills and confidence to make informed choices, to know where to go for help, and take other effective actions to improve their financial well-being. MCOA's 2017 Housing Issues Training Forum

7. Setting the Table MCOA's 2017 Housing Issues Training Forum

8. Help! Owning a Home is Really Costly!! -- Mary Kay Browne, MCOA Local Property Tax Relief Programs State Income Tax Credit for property taxes or rent plus water/sewer bills that exceed affordability thresholds Home Repair or Renovation Funding Sources Energy Cost Reduction Strategies Reverse Mortgages Maybe Renting Would Be Better… MCOA's 2017 Housing Issues Training Forum

9. What Does Affordable Housing Mean? Families who pay more than 30 % of their income for housing are considered moderately cost burdened . They likely have difficulty affording necessities such as food, clothing, transportation and medical care. Families who pay more than 50% of their income are considered severely cost burdened. Source: HUD MCOA's 2017 Housing Issues Training Forum

10. So What? Nearly half (47%) of single Old Age Social Security Pensioners rely upon SS for all their income! Average Social Security Amounts (2016): • $1,341/month per person MCOA's 2017 Housing Issues Training Forum

11. In MA in 2014, 48% of renters are paying more than 30% of income on rent. Of those people, more than half (25.5%) were severely cost burdened (paying more than 50%) MCOA's 2017 Housing Issues Training Forum

12. Homeowners MCOA's 2017 Housing Issues Training Forum

13. The negative impact of social isolation Studies show that social isolation can be as dangerous as smoking 15 cigarettes a day. MCOA's 2017 Housing Issues Training Forum

14. Friendships are a Big Deal “Ironically, just at the time that we may need others more in our life to get around, to help with daily tasks, to talk with, we find ourselves utterly alone.” • Janet Seckel-Cirrotti, Executive Director, FriendshipWorks MCOA's 2017 Housing Issues Training Forum

15. Options for Cutting Expenses Tax Relief – Low Cost Home Renovation Loans - Utility Discounts – Tapping Equity - Downsizing – Home Sharing

16. Types of Property Tax Relief State Statutes (by local option) Tax Deferrals Elderly Tax Exemptions Town Adopted Program (by local option) Senior Work Programs State Tax Credit Program: Senior Circuit Breaker Refundable Tax Credit MCOA's 2017 Housing Issues Training Forum

17. 41 A Deferral – Delay Payment (“a low interest loan from town”) Eligible Age: 65 years Income Limit: Set by local option, up to Circuit Breaker Limit Defer Tax: All or part*, up to 50% of value of property owned Interest rate: Set by town, not greater than 8%/per year Application: File annually Repayment Terms: Payment due when the owner conveys the property via sale, gift, or via probate MCOA's 2017 Housing Issues Training Forum

18. ExemptionsFixed Amount Set by Town Eligibility Basics • All eligibility factors determined as of July 1st. • Age 65 + requirement. • Income and asset tests • Applicant must own the property. • Applicant must occupy the property as his or her domicile(your principal and legal home where your family, social, civic, economic life is centered.) • Applicant must apply annually by deadline which is related with when tax bills are mailed out by town. MCOA's 2017 Housing Issues Training Forum

19. Senior Tax Work Off Program Elders in the program earn an abatement that reduces their annual property tax, through working in a municipal department. The elder earns minimum wage pay for the work. Eligible Age: 60 years and above. Other Eligibility Factors: Some towns set a maximum income level. Assistance Amount: Up to $1500 maximum (2017). Amount is set by town legislators. Amount earned is not considered income for state income tax purposes How its Paid: By abatement when actual tax bill issued MCOA's 2017 Housing Issues Training Forum

20. “Circuit Breaker” Refundable Tax Credit A income tax credit for adults age 65 + Property taxes and half of water/ sewer bills must be more than 10% of annual income (for renters, rent must be greater than 25% of their income.) Adults can get this income tax credit even if they owe no state income taxes. Also, you can get this refundable tax credit if you also receive a property tax exemption or senior tax work off. The value of the refundable credit can be as high as $1,070 for 2016 tax filers. To obtain the credit, you must file a MA Income Tax “Form 1” and the “CB Form” for the 2016 tax year You may file to get a refundable credit for the last 3 years* tax returns. MCOA's 2017 Housing Issues Training Forum

21. Circuit Breaker, continued • 25% Rule for Renters: The credit will equal the amount by which 25% of your rental payments exceed 10% of your income, up to the maximum credit of $1,070 in 2016. • The law assumes that 25% of rent goes toward property taxes. Income Eligibility: • $57,000 – Single • $71,000 - Head of Household • $86,000 – Married and filing jointly Maximum Home Value: $720,000 MCOA's 2017 Housing Issues Training Forum

22. Editable Fact Sheets Available • Go to www.MCOAonline.com to get fact sheet templates for use in your town • Insert your local details • Phone number for Council on Aging and the Tax Assessor’s Office • Interest Rates for property tax deferrals • The amount available for the property tax exemptions • The office that manages the Tax Work Off Program and the eligibility factors for same in your town • Specific timelines and due dates for your town MCOA's 2017 Housing Issues Training Forum

23. Next: Home Repair or Renovation Funding Sources Multiple Sources Provide Loans, Grants, Donated or Discounted Labor • Self Funded • Housing Consumer Resource Centers • Veterans Agents • Habitat for Humanity • Local Funds for Home Repairs • CBDG • FHA backed Low Interest Loans • And others • See Housing Issues Manual for details MCOA's 2017 Housing Issues Training Forum

24. Next: Energy Cost Reduction Strategies LIHEAP Weatherization Programs with generous subsidies Utility Discount Programs Utility-funded Energy Efficiency Programs MCOA's 2017 Housing Issues Training Forum

25. LIHEAP and WAP • Low Income Home Energy Assistance Program (LIHEAP) offers fuel assistance for low-income renters and homeowners. • Eligibility is based on household gross annual income. • Once eligible, your local fuel assistance agency will notify your heating company. • LIHEAP application also covers WAP • Current Income Eligibility: • 1 person - $32,618 • 2 person – 42, 654 • The Weatherization Assistance Program (WAP) for low-income households enrolled in LIHEAP, SSI and TAFDC • Includes installation of weather stripping, caulking, storm windows, insulation, and other materials as well as burner testing, tune-up, and minor repairs. • Massachusetts HEATLINE toll-free at: 800-632-8175 MCOA's 2017 Housing Issues Training Forum

26. Lowering Energy Costs for those not eligible for LIHEAP • The Good Neighbor Energy Fund: For limited income households who are NOT eligible for LIHEAP. • Operated by the Salvation Army:In area codes 617, 508, 781, or 978: 1-800-334-3047 • In area code 413: 1-800-262-1320 • Website:  www.magoodneighbor.org Utility Funded Energy Efficiency Programs • Free home energy use assessment • Rebates on light bulbs and fixtures, electric clothes dryers, dehumidifiers, room air cleaners, advanced power strips, and energy-saving showerheads, etc. • Guidance and rebates on new efficient boilers, water heaters, central air conditioning systems and more. • Installation at no cost or a reduced fee. • 75% off, up to $2,000, toward the installation of approved insulation improvements. • Contact your local utility company or DHCD: 617-573-1400. MCOA's 2017 Housing Issues Training Forum

27. Next: Tapping Home Equity What is a Reverse Mortgage? • The FHA – insured Home Equity Conversion Mortgage (HECM) was signed into law on Feb 5th 1988 by President Reagan • As part of the Housing and Community Development Act of 1987 • A reverse mortgage is… • A loan against the home that allows qualifying senior homeowners to convert their home equity into cash • A loan that does not require monthly payments • A loan that requires repayment only when the last surviving borrower leaves the home permanently • Also know as a HECM & is federally insured by HUD MCOA's 2017 Housing Issues Training Forum

28. Why do people get a Reverse Mortgage? To pay off their existing mortgage and relieve household budget To pay for home repairs/Improvements To pay for taxes & insurance To pay for a large expense To have access to additional funds for the future if needed To improve their quality of life MCOA's 2017 Housing Issues Training Forum

29. How does it work? • Works just like a regular mortgage but in reverse. • No payments are required & the borrower can receive money from the mortgage lender in several different ways • As a monthly payment sent for a certain term, or • As a lump sum at closing, or • As a line of credit to draw from as needed, or • As a monthly tenure payment sent as long as the borrower lives in the home, or • As a combination payment MCOA's 2017 Housing Issues Training Forum

30. How much money can you get? • The lender will determine this based on: • The property value • Youngest borrowers age • The interest rate used • Its usually between 40-60% of the home value • The younger the borrower the lower the amount MCOA's 2017 Housing Issues Training Forum

31. The Pros … The Cons … The loan balance grows over time Expensive loans, with high closing costs Most costly for short term use The heirs inherit a home with a lien • No payments required • Any money that you receive is not considered income • Non-taxable • No restrictions on spending • Does not affect social security or Medicare • Borrower retains title of home • Non-recourse loan MCOA's 2017 Housing Issues Training Forum

32. Borrower Obligations Must live in the home as your primary residence for 6 months and 1 day out of each year Must pay property taxes and home owners insurance and HOA fees Must keep the house in good general condition If the obligations are not met the loan can become due and payable and the borrower could lose the home to foreclosure MCOA's 2017 Housing Issues Training Forum

33. How does a Reverse Mortgage get re-paid? • When the last surviving borrower leaves the home permanently (moves, sells, or dies), the reverse mortgage becomes due and payable • The heirs have 3 different options… • If they want to keep the home, they will have 6 months to re-pay the loan • If there is equity in the home and the heirs do not want it, they will have up to a year to sell, pay back the lender and keep the rest of the money • If there is no equity left in the home and the loan is upside down- the heirs are not responsible to sell or pay anything MCOA's 2017 Housing Issues Training Forum

34. Impartial Counseling Requirement • Counseling is required by HUD through a 3rd party housing counselor who is specifically trained in the HECM program. • MA has several federally designated counseling agencies • Counseling plays a vital role in the overall process of getting a reverse mortgage. • The counselors job is to be impartial and go over the advantages and disadvantages • The counselor explores all options with the borrower • The counselor will help locate any resources to help them save money on any expenses MCOA's 2017 Housing Issues Training Forum

35. “So, Maybe I Should Move….”To Own or To Rent? That is the Next Question… Average rents are high, its true… But home ownership is even more expensive than renting for many people. MCOA's 2017 Housing Issues Training Forum

36. MA Rent Levels are Higher than National Average • Boston MA (has a rental market with costs twice as high as the nation.) • The cost of living in Boston is 240% the national average, with apartments ranking 48% more expensive than the national average of $934 in 2014. • Boston, MA • 1 BR $1900 • 2 BR $2,300 • 3 BR $2,650 • Cambridge, MA • $1,400 1 bedroom • $1,750 2 bedroom • $2,300 3 bedroom • Sources: April 29, 2016 - Rent.com and https://www.rentrange.com/boston-ma/ • Brockton • 1 BR $1,000 • 2 BR $1,200 • 3 BR $1,400 • Springfield • 1 BR $800 • 2 BR $920 • 3 BR $1050 • Lawrence • 1 BR $1,150 • 2 BR $1,250 • 3 BR $1,410 • Pittsfield • 1 BR $780 • 2 BR $900 • 3 BR $1,000 MCOA's 2017 Housing Issues Training Forum

37. MCOA's 2017 Housing Issues Training Forum

38. Housing as Share of Income: Social Security Pensioners • Average Social Security Amount (2016): • $1,341/month -- $16,100/year • Almost half (47%) of single Old Age Social Security Pensioners rely upon Social Security for almost all (over 90%) of their income! MCOA's 2017 Housing Issues Training Forum

39. Wide Spread Problem For renters with incomes less than $15,000, 84% are cost burdened (paying more than 30%) In fact, an astonishing 77% are severely cost burdened (pay more than 50% of their income on housing costs.) Source: Harvard University, Joint Housing Center For renters with incomes between $15,000 - $29,999/year, still 77% are cost burdened Of those, 37% are severely cash burdened (pay more than 50%.) MCOA's 2017 Housing Issues Training Forum

40. What Tenants and Landlords Need to Know Betsey Crimmins, Senior Attorney Greater Boston Elder Services MCOA's 2017 Housing Issues Training Forum

41. THE BASICS OF LANDLORD - TENANT LAW IN MASSACHUSETTS

42. WHO CAN EVICT A TENANT? A landlord can initiate the legal process, BUT ONLY AJUDGE CAN EVICT!

43. THE EVICTION PROCESS . INITIAL NOTIFICATION: If a landlord wants to terminate a tenancy, he must first serve the tenant with a Noticeto Quit. This puts the tenant on notice that the landlord plans to terminate the tenancy by a certain date. However, the tenant does NOT have to leave the apartment by that date

44. NEXT STEPS FILE A CASE IN COURT: In order to proceed with the eviction process, the landlord must wait for the notice period to pass. He can then file a Summons and Complaint with the court which is then served on the tenant by a constable

45. THE ANSWER This is the tenant’s chance to tell her story and build a successful legal case by asserting any and all defenses and counterclaimsshe may have

46. DISCOVERY Along with the Answer, the Tenant can request “Discovery.” This requires the landlord to provide documents and answer questions that might be helpful to the Tenant’s legal defense moves the trial date back two weeks

47. TRIAL Each party tells their story to the Judge The Judge will render a decision or “Judgment” Each party has ten days to appeal

48. Post-Eviction Issues Once Execution issues - ~ Landlord gives the paper to a constable ~ Constable delivers a 48 hour move out notice [move outs Mon. - Fri. only] ~ Landlord pays movers and storage for 3 months

49. REASONABLE ACCOMMODATION Federal and state law allow people with disabilities to request and receive reasonable accommodations from their landlords to allow them to fully use their homes T

50. TYPES OF ACCOMMODATIONS ~ Structural changes - e.g., installing a wheelchair ramp ~ altering management policies, rules, or services - e.g., allowing a blind tenant to keep a seeing eye dog even if a building has a no pets policy ~ support services plans - e.g., for someone with a mental impairment